Questions About LLC EIN

[Hailun Feng]

Hi there,

I formed a single-member LLC in New York and obtained an EIN shortly after. I believe the LLC was taxed as a disregarded entity at that time. Later, I filed a form with the IRS to change the tax classification to a C-corporation. In this case, do I need to obtain a new EIN, or can I continue using the EIN that was issued after the LLC’s formation? The ownership and structure of the business have not changed — only the federal tax classification.

I appreciate your time and assistance.

[pk]

@Hailun Feng ,  my personal preference  would be to ask for  a new  EIN for the C-corp.   I say this because  (a) it is clean cut change to a new  entity;  (b)  a C-Corp  has a different type  of account/ accounting than an LLC;  (c)  generally you have to choose  the  reporting entity class  by the first filing --- this is because a C-Corp  is very different  from a dis-regarded entity -- it stands on its own.  ( even if the  DBA  and type of business is the same .  Also your creditors  will have different recourse than as a dis-regarded entity.

Also note while you can prepare your  dis-regarded entity with Individual  TurboTax, you will need  TurboTax Business  to do the one for your C-Corp.

That's my view   based on my own experience with dis-regarded entity and  C-Corp.

Is there more I can do for you.

[Hailun Feng]

Thank you. The entity itself is still an LLC. It is just the tax classification has changed. This is what I found on IRS website.

Limited liability company (LLC)

Get a new EIN if you:

• Form a new single-member LLC and choose to be taxed as a corporation or S corporation
• Form a new single-member LLC and have to file excise or employment taxes
• Form a new multi-member LLC

You don’t need a new EIN if you:

• Change your name or locations
• Report income tax as a branch or division of another entity and you don’t have employees or owe excise tax
• Convert a partnership to an LLC classified as a partnership
• Change your tax election to a corporation or S corporation
• Form a single-member LLC and don’t choose to be taxed as a corporation or S corporation and don’t have employees or owe excise tax

[pk]

@Hailun Feng  I have no issue with the IRS position -- I was trying to  cut the connection. from the LLC to C-Corp.   Also note that the last paragraph suggests  that you have to choose  during the first year  ---- as you said  in your case you have  filed  under SSN ( or did I understand it wrong ).    You can always visit the local IRS office and get the official position.    Although  if you had employees that continue from LLC EIN to C-Corp EIN (? ) , how IRS keeps track.   That is one of the reasons why I was suggesting  a clean new EIN -- that  way for the IRS employees are employed by a new and different  "employer "

What are you trying to achive ?

[M-MTax]

Yeah, you don't need a new EIN in this case.

[Hailun Feng]

Thank you all. The LLC was formed on April 6, 2021, and we obtained the EIN shortly after, in May. In November of the same year, we changed the classification to a C-corporation and filed taxes for the first year as a corporation. The tax classification is the only change. It is a single-member LLC with no employees. I just want to confirm whether a new EIN was required, given that the only change was the tax classification.

[M-MTax]

New EIN is not necessary, but you know you're going to be filing an 1120 from now on, right?

[Hailun Feng]

Thank you! Sorry. One last question. My understanding is that a new EIN is only required when the business ownership and/or structure change through amendments to the state. A change in tax classification does not constitute a change in business ownership or structure. Is this correct? Thank you again.

[Hailun Feng]

Thank you! Yes, my tax account has been filing that since the first year.

[M-MTax]

A change in tax classification does not constitute a change in business ownership or structure. Is this correct?

No, not for this type of change. Correct.

[Hailun Feng]

Thank you! Sorry to be annoying but confirming for the last time, I don’t need a new EIN for my LLC given it was only a federal tax classification change from disregard entity to C-corporation and I can continue using the old EIN obtained after formation?

[Hailun Feng]

And it is a single member LLC with no employees. The first year’s taxes was filed as a C-corporation.

[M-MTax]

The LLC can continue using the same EIN after electing to be taxed as a C corporation.

The LLC will be filing an 1120 C corporation income tax return.

[Hailun Feng]

Thank you. Does it matter if the LLC is a single member or not in this case.

[Hailun Feng]

Also, does it matter if the single member LLC was taxed as a disregarded entity before the tax classification to C-corporation. The first year was filed as a C-corporation though for taxes.